MCX Gold under fresh buying; Support seen at 53866
Commodity Online | August 05 2020
UPDATED 09:30:01 IST

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Technically Gold market is under fresh buying as market has witnessed gain in open interest by 0.29% to settled at 16286 while prices up 834 rupees.

Now MCX Gold is getting support at 53866 and below same could see a test of 53182 levels, and resistance is now likely to be seen at 54923, a move above could see prices testing 55296.

Gold yesterday settled up by 1.55% at 54551 as prices held steady near record highs as worries over global economic fallout from mounting COVID-19 cases offset an uptick in risk sentiment driven by positive U.S. economic data.

Central banks around the world have rolled out a flurry of stimulus measures and cut interest rates to mitigate the economic damage caused by the pandemic, helping gold rise more than 30% so far this year as it is seen as a hedge against inflation and fears of currency debasement.

Meanwhile, U.S. lawmakers said they had made progress in talks on a new coronavirus relief bill. Holding back the metal, investor appetite for riskier assets rose after strong U.S. manufacturing data and gains in tech stocks.

India's gold imports in July fell 24% from a year earlier as a rally in local prices to a record high curtailed retail purchases amid lockdown in many towns to curb the spread of the coronavirus, a government source said.

The world's second-biggest consumer of the precious metal imported around 30 tonnes of gold in July, down from 39.66 tonnes a year ago.

Chinese gold dealers were forced to offer the steepest-ever discounts this week as physical demand plunged, while the Indian market flipped to a premium again. Indian dealers charged premiums of about $8 an ounce over official domestic prices, versus last week's $6 discount.

Trading Ideas:
--Gold trading range for the day is 53182-55296.
--Gold held near record highs as worries over global economic fallout from mounting COVID-19 cases.
--Central banks around the world have rolled out a flurry of stimulus measures and cut interest rates to mitigate the economic damage.
--Holding back the metal, investor appetite for riskier assets rose after strong U.S. manufacturing data and gains in tech stocks.

Courtesy: Kedia  Commodities